FLOORING manufacturer James Halstead plans to invest up to é18m at its headquarters to expand capacity over the next four years.

FLOORING manufacturer James Halstead plans to invest up to é18m at its headquarters to expand capacity over the next four years.

The AIM-listed company is spending é10m to increase production of its slip-resistant flooring, which is in big demand for use in buses and trains, school corridors, store rooms, industry, pubs and bars.

Planning permission has been granted for an extension to its factory in Radcliffe, which employs 600.

The expansion will be carried out in three phases.

In addition, James Halstead is looking to spend up to é8m to extend its warehousing and distribution facilities at the site over the next three years.

News of the investment, which could generate scores of jobs, came as chairman Geoffrey Halstead gave an update to shareholders. He said the company continues to make progress and is on track for another good year.

Profits

In September, James Halstead posted profits of é17.5m for the year to June 30, a rise of 27 per cent, on sales of é126m.

Geoffrey Halstead also announced a 30p special dividend to shareholders, which will cost the firm é15m.

Shares in the business ticked up four per cent, or 19p, to 487.5p after the update.

Finance director Gordon Oliver said the expansion was a response to soaring demand for its specially-coated slip-resistant flooring on the back of health and safety requirements. Sales of the flooring were around é35m in the last financial year.

"We need to increase capacity and construct new buildings. There was no question of going anywhere else - we have some of the best equipment in the world as well as our warehouse and distribution, sales and marketing staff and technical expertise at this site," he said.